RailTel shares rose nearly 2% in early trading today following the announcement of the company's Q2 earnings. As of the current session, i.e., October 29, 3:30 pm, RailTel shares were trading at ₹405.90.
The multibagger stock has demonstrated a strong track record in share market investment, with a rise of 82.14% over the past year and a significant gain of 244% over the last two years. RailTel's market capitalisation currently stands at ₹13,030 crores, with approximately 0.46 lakh shares traded, generating a turnover of ₹1.85 crores.
Q2 net profit shows a 7% increase
RailTel's Q2 earnings report highlights a 7% increase in net profit, totalling ₹73 crores for the quarter, up from ₹68 crores in the previous September 2023 quarter. This boost in profitability may be of interest to those considering share market investment opportunities, as it demonstrates consistent growth in the company's financial performance. RailTel's revenue also saw a notable increase, rising 41% year-over-year to ₹843 crore in Q2, up from ₹599 crore in the same quarter last year. The company's revenue grew 51% quarter-on-quarter, compared to ₹558 crore in the previous quarter.
EBITDA margin and operating earnings in Q2
RailTel reported an operating EBITDA of ₹129 crore for Q2, marking a 2% rise from the ₹126 crore recorded in the corresponding period of the previous year. The EBITDA margin for the last quarter came in at 15.3%, down from 21% in the same quarter a year ago and 18.5% in the April–June quarter. For those exploring share market investment, the EBITDA margin provides insight into RailTel's operating efficiency and cost management.
RailTel's performance over the past year
Over the past 52 weeks, RailTel stock recorded a low of ₹220.20 on October 30, 2023, and reached an all-time high of ₹618 on July 12, 2024. Currently, the stock has experienced a decline of approximately 33% from this peak. Those interested in share market investment may observe that RailTel's price performance reflects both high growth potential and fluctuations, with a beta of 1.6 indicating heightened volatility over the past year.
Technical indicators: RSI and trading position
The relative strength index (RSI) of RailTel stock stands at 42.5, suggesting a neutral position where the stock is neither overbought nor oversold. Technical indicators like RSI are commonly monitored by individuals interested in share market investment as they assess market sentiment and potential entry or exit points in stocks.
RailTel Corporation: Overview of telecom infrastructure services
RailTel Corporation, a Navratna public sector enterprise (PSU), is recognised as one of the largest neutral telecom infrastructure providers in India. The company owns a pan-India optic fibre network with exclusive rights-of-way (ROW) along railway tracks. RailTel's services are organised under two main segments: telecom services and project work services.
These segments encompass a range of offerings, including leased line, data centre, and cloud services, positioning RailTel as a significant entity in India’s telecom infrastructure landscape.
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